Idaho Admin. Code r. 02.02.13.451 - AMOUNT OF BOND, IRREVOCABLE LETTER OF CREDIT, CERTIFICATE OF DEPOSIT, OR SINGLE BOND
01.
Bonding
Requirement. The amount of bond to be furnished for each class 1 dealer
and each class 2 dealer is fixed at a rate pursuant to Section
69-506, Idaho Code.
(3-15-22)
02.
Single Bond,
Irrevocable Letter of Credit or Certificate of Deposit. For the purposes
of licensing as a commodity dealer pursuant to Title 69, Chapter 5, Idaho Code,
and a seed buyer pursuant to Title 22, Chapter 51, Idaho Code, a single bond,
irrevocable letter of credit or certificate of deposit shall be fixed at
whichever of the following amounts is greater: (3-15-22)
a. Combined total indebtedness paid and owed
to producers for agricultural commodity and seed crop, without any deductions,
for the previous license year; or (3-15-22)
b. The indebtedness owed and estimated to be
owed to producers for agricultural commodity and seed crop, without any
deductions, for the current license year. (3-15-22)
03.
Additional Bonding
Requirements. If it appears the licensee does not have the ability to
pay producers for commodities purchased, or when it appears the licensee does
not have a sufficient net worth to outstanding financial obligations ratio, the
licensee may be required to post a bond or other additional acceptable security
in the amount of two thousand dollars ($2,000) for each one thousand dollars
($1,000) or fraction thereof of deficiency. (3-15-22)
Notes
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